Frank Bauer, Smith's agent, said talks between the team and coach were at a stalemate and added: "We're not close, we're not encouraged and based on where talks have gone recently, Lovie will be a free agent after next season."

Coaches who take their teams to the Super Bowl, even in a losing effort, usually make at least £2.5m a year.

But Smith, who has one year remaining on his original contract, was the league's lowest-paid coach at £700,000million in 2006 and will make marginally more this year.

"It would take an unforseen breakthrough for this to get done," Bauer added. "And we are being more than reasonable in this market."